Duolingo’s Growth Potential: Capitalizing on Global Language Learning Demand

J.P. Morgan analyst Bryan Smilek has reiterated their bullish stance on DUOL stock, giving a Buy rating on May 2.

Bryan Smilek has given his Buy rating due to a combination of factors that highlight Duolingo’s potential for substantial growth. The company is well-positioned to capitalize on the significant global demand for language learning, with an estimated 2 billion global language learners, of which Duolingo has only tapped into a small fraction. This indicates a vast opportunity for user expansion as the company continues to enhance its content offerings and improve teaching efficacy.
Moreover, Duolingo’s focus on English learning, which is the most studied language worldwide, presents a significant growth avenue. The company’s strategic investments in marketing and localization, particularly in regions like EMEA and APAC, are expected to bolster user growth. Additionally, Duolingo’s strong brand reputation, gamified learning approach, and efficient customer acquisition strategies are anticipated to drive revenue growth and improve monetization, supporting the company’s long-term financial targets.

In another report released on May 2, Scotiabank also maintained a Buy rating on the stock with a $470.00 price target.

Based on the recent corporate insider activity of 105 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DUOL in relation to earlier this year.